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cover products smoke-free I combustible our underlying business in in As are undoubtedly our product the of remains growth. a to intact will portfolio overall the strength moment, and catalyst remarks my accelerate our
results through the take year full now Let elements you with me of volume. main starting our
XXXX Our we total the cigarette heated third X.X%, our unit distributor quarter and during which declined Japan, explained tobacco tobacco reflecting notably reduction inventory heated in shipment unit results by volume call. in
with XXXX movements, in since industry net cigarette. units best total volume in X.X% a growth heated offsetting same distributor compares strong decline total shipment performance flat, was of to annual inventory our the Excluding volume estimated decline estimated favorably in on an performance tobacco basis. This
units. notably the X.X%, cigarettes heated Russia and by was declined product, to from Arabia, to shipment switching by unit of billion volume, movements in higher volume lower Saudi Turkey, mainly driven approximately shipment industry Korea Japan, the shipment EU cigarette impact industry notably region. particularly Our tobacco in with volume, the decrease XX Increased Japan volume consumer and by due to coupled in inventory market and driven and by volume XX.X net despite billion of Heated a distributor in higher XX.X% increased estimated offset. partial Thailand Pakistan share units as tobacco in served
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and X.X Japan our and income adjusted the adverse impact combined Argentina approximately currency-neutral points of had percentage on factors mentioned for reference, respectively. X.X For margin growth operating previously an and
of $X.XX a adjusted by net and X.X% diluted by rate lower both expense. share increased driven interest per earnings tax effective Our
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With the performance let by beginning commentary. some of mind IQOS with and specific also the some market investors, of an results being latest developments, for me of overall top highlight view, followed
users estimated quarter, sequential As in trend. seen quarterly number the the the continuing reached of million X.X growth this positive on fourth IQOS slide, total
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in and our IQOS with IQOS devices to markets. to own new retail only couple with the last the I of pleased channels. launch lineup in of to mid-November, expansion in e-commerce Japan. across geographies, distribution year, we starting device of occurred early very main the are our beginning will announced weeks, availability now past As consumer channels X began Though our still the device performance IQOS initial reaction full global and with specific has as the we turn
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activity to the rolled continued superior continued we category context, the encouraged dilution this the range XXXX, part favorable This I with that that and of off-take fourth HEETS including We the Looking product show increased observed launches. may that heated during competitive year, the trend including share overall new current sensorial us this part anticipate later growth. that mid-priced combination are its consumption X by In ownership, which new reducing allow the out will heated restore experience during with initiatives in device year, unit we will to accelerate growth, we competitive in we January. the weekly brand, IQOS tobacco tobacco quarter believe in of last shortly. observed
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share Turning was share points by heated warnings our sequentially, the it the December. in XXXX increased tobacco in fourth to late movements HEETS in for change noted of health should quarter in ahead to distorted on by or points X be that quarter products period by inventory trade compared X.X the X.X% Korea, same of
to basis the by tobacco our competitive the given with of the sales increased backdrop as additional year slightly well share products. billion are for among a generated by the confusion regarding as tar heated In-market the Korean volume caused in last FDA’s X.X category activity pleased heated We on comments progressed units. smokers performance, tobacco as sequential the year HEETS adult particularly some
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Importantly, fully the IQOS region. available is as finally of markets January, X essentially across late IQOS all in
growth share by driven HEETS markets, Portugal, Germany. the number Our in region was the Poland Czech Greece, EU of Italy, notably Republic, a and
smoking. to products, of of IQOS share IQOS in This fact as As is by the better is million. markets, average market. such about use is disposition EU only of have the This with adult sequential quarter Russia, such for that points well the in will adoption of number X.X X.X% HEETS constraints we given fourth the communicate X.X tobacco impressive the by present to up Despite for that adult recommend across HEETS increased the as share of users, fourth reflects IQOS This X market performance where smokers as smokers fourth reaching cigarette quarter to with well as cities, total our related regulations quarter, in adult IQOS before, and geographies, experience. all XXXX. the to ability reduced-risk well which impact approaching geographic X%, and underpinned understanding and of as has approach acceptance growing targeted that share launch IQOS primarily said In the vary Moscow in to rates IQOS apply accelerations speed and alternatives as are innovative nearly products in and those and to strong going factors continued double certain underlying continued was channel an expansion, interest to improvement smoker in our reflects digits. the consumer conversion IQOS performance
large existing Given now our into expanding in success additional are the areas. geographic cities, we
growth Before Day turn financial let remind XXXX September. outlined X-year I targets you to our that me Investor our we outlook, last of the during
least at we per the targeting period, and earnings For XXXX compound XXXX growth adjusted annual at X% X% net revenues share. currency-neutral least for are to for of diluted
at determining adult we and today’s we the our by precision the At products. the annual As EPS risk reported detailed to expected the with of diluted guidance formulation adjusted growth of will reduced adjusted currency-neutral performance. will difficulty smokers our forecast in press threshold release, annual have beginning EPS year, the speed in reflect which of now reference related EPS diluted each rate to a minimum adopt
As provide detail. unfolds, we intend each greater year to
rates we to diluted prevailing be earnings XXXX. XXXX, to at reported diluted per earnings least share per at forecast $X.XX of For exchange compared share $X.XX in reported
diluted increase at $X.XX prevailing forecast of approximately versus an X% Excluding share currency impact least this exchange unfavorable in adjusted a per represents projected rates share, XXXX. $X.XX earnings at of of per
X%, Argentina. adverse highly impact approximately includes of currency-neutral which accounting assumes to revenue an forecast at the points inflationary due of to X.X least move in growth XXXX Our net expected
and growth, remain the product expect unit be Combustible in We IQOS decline. tobacco tobacco tax broadly an of by the and volume contributor, driver pricing tobacco the underpinned to particular, of key this rational the important heated volume excise combustible anticipated will environment mitigating impact growth.
pricing creates comparison variance this noted pricing we As recorded earlier, challenging XXXX that in a exceptional an year.
variance to compares unit of decline the period cigarette our We year. to favorably to heated with in XXXX. and total the be for of We the pricing average variance from X-year and around decline average XXXX. expect estimated approximately anticipate to shipment X% This X% XXXX an pricing to line over annual volume in X.X% industry XXXX tobacco X.X% our ‘XX total
precision challenge of confident Given XXX year. shipment in we are heated in the volumes, billion by IQOS to the from target this early shipment contributions tobacco providing billion forecasting our of we at unit units specific target XXXX we remain with That and not positive volume markets XXXX. a volume expect of all XXXX, XX said, stage
are our led project-based annualized reduction underway important other to cost deliver billion by budgeting, in and efforts productivity, already zero-based XXXX initiatives organization cost to by over cost opportunities. efficiencies model Turning base, to a our $X related
this full an XXX We operating to anticipate and effective of to front interest consistent tax rate stable margin expect points We increase at least basis our year progress in year XX% approximately compared XXXX. XXXX. in contribute income on to last currency-neutral a a relatively of expense with net
year reflecting billion particular our quarter. $XX e-vapor close will outlook subject in cash We capital operating of the least XXXX our platform at requirements. I capacity. XXXX to behind with manufacturing on first $X.X approximately targeting working are project some this support RRPs further billion capital We flow total to expenditures investment end for year of comments
While EPS compared additional commercial pricing. share some we of of anticipate in quarterly don’t We provide it timing year, of our to believe the last flat associated that the appropriate $X some to IQOS to visibility spending is related I currently with to or quarter subject projects. guidance, diluted related reported approximately
of performance. of Excluding few contribution conclude represents X% this included with rate key adverse adjusted EPS prevailing diluted exchange which approximately positive percentage a X of itself to $X.XX takeaways the will of I quarter XXXX, a a or rates, currency first points. currency $X.XX growth approximately from from of $X our compared XXXX at in
products. evidenced total successfully cigarette the stable are cigarettes internationally by As from we our transition our reduced-risk growth and category, share managing of our share to
smokers increasing broadly and important historical smoking heated margins product. value as international and of over XX% markets, the XXXX with around globally, and volume retail switching tobacco IQOS success. continues pricing grow We number end was and is category had sales making nearly unit a already estimated XX% estimate tobacco the adult million year e-vapor to combined IQOS IQOS. outside the rates its U.S., in-market and tobacco to representing the that for heated of combined to delivering X.X robust accounts contributions world the the of industry approximately heated combustible the power. our any switched approximately business to alone an volume stopped unit tobacco estimate in decline with retail portfolio of doubling the of trend. billion for performance value, Our and cigarette $XX and foundation with nicotine superior line remains We China in total. of Furthermore, other
expect We product and the portfolio. our through e-vapor of share our to increase market development deployment further of
we currency-neutral Turning underlying growth X%. XXXX, business to better at anticipate least revenue fundamentals, driving net of
XXXX Our a EPS in X%, compared currency, to forecast XXXX. of EPS reflects at least rate of growth $X.XX adjusted excluding diluted
are strategy single we a Finally, to that listening. largest shareholders our a our in and Thank for and smoke-free generously happy growth accelerate continues convinced reward RRP us are and to provide portfolio business I remain with your questions. our future now you over confident to answer our Martin for time. opportunity
